PART 301—ELIGIBILITY, INVESTMENT RATE AND APPLICATION REQUIREMENTS Authority: 42 U.S.C. 3121; 42 U.S.C. 3141-3147; 42 U.S.C. 3149; 42 U.S.C. 3161; 42 U.S.C. 3175; 42 U.S.C. 3192; 42 U.S.C. 3194; 42 U.S.C. 3211; 42 U.S.C. 3233; Department of Commerce Delegation Order 10-4. Source: 71 FR 56675, Sept. 27, 2006, unless otherwise noted. Subpart A—General § 301.1 Overview of eligibility requirements. In order to receive EDA Investment Assistance, the following requirements must be met: (a) The applicant must be an Eligible Applicant as set forth in subpart B of this part; (b) The Region in which the Project will be located must meet the economic distress criteria set forth in subpart C of this part; (c) The sources of funding for the Project must fulfill the Investment Rate and Matching Share requirements set forth in subpart D of this part; (d) The Eligible Applicant must satisfy the formal application requirements set forth in subpart E of this part; (e) The Project must meet the general requirements set forth in part 302 (General Terms and Conditions for Investment Assistance) and the specific program requirements (as applicable) set forth in part 303 (Planning Investments and Comprehensive Economic Development Strategies), part 304 (Economic Development Districts), part 305 (Public Works and Economic Development Investments), part 306 (Training, Research and Technical Assistance Investments), or part 307 (Economic Adjustment Assistance Investments) of this chapter; and (f) EDA must select the Eligible Applicant's proposed Project. [71 FR 56675, Sept. 27, 2006, as amended at 79 FR 76124, Dec. 19, 2014] Subpart B—Applicant Eligibility § 301.2 Applicant eligibility. (a) An Eligible Applicant for EDA Investment Assistance is defined in § 300.3 of this chapter. (b) An Eligible Applicant that is a non-profit organization must include in its application for Investment Assistance a resolution passed by (or a letter signed by) an authorized representative of a general purpose political subdivision of a State, acknowledging that it is acting in cooperation with officials of such political subdivision. EDA, at its sole discretion, may waive this cooperation requirement for certain Projects of a significant Regional or national scope under part 306 or 307 of this chapter. See [71 FR 56675, Sept. 27, 2006, as amended at 82 FR 57053, Dec. 1, 2017] Subpart C—Economic Distress Criteria § 301.3 Economic distress levels. (a) Part 305 (Public Works and Economic Development Investments) and part 307 (Economic Adjustment Assistance Investments). (i) An unemployment rate that is, for the most recent 24-month period for which data are available, at least one percentage point greater than the national average unemployment rate; (ii) Per capita income that is, for the most recent period for which data are available, 80 percent or less of the national average per capita income; or (iii) A Special Need, as determined by EDA. (2) A Project located within an Economic Development District, which is located in a Region that does not meet the economic distress criteria described in paragraph (a)(1) of this section, also is eligible for Investment Assistance under parts 305 or 307 of this chapter if EDA determines that the Project will be of “substantial direct benefit” to a geographic area within the District that meets the criteria of paragraph (a)(1) of this section. For this purpose, a Project provides a “substantial direct benefit” if it provides significant employment opportunities for unemployed, underemployed or low-income residents of the geographic area within the District. (3) A Project located in a geographic area of poverty or high unemployment that meets the requirements of paragraph (a)(1) of this section, but which is located in a Region that overall does not meet the requirements of paragraph (a)(1) of this section, is eligible for Investment Assistance under parts 305 or 307 of this chapter without regard to political or other subdivisions or boundaries. (4) Data requirements to demonstrate economic distress levels. (i) For economic distress levels based upon per capita income requirements, EDA will base its determination upon the most recent American Community Survey (“ ACS BLS (ii) For economic distress based upon a Special Need, EDA will conduct the independent analysis it deems necessary under the facts and circumstances of a given case. Eligible Applicants are encouraged to submit reliable data substantiating their claim of a Special Need. (b) Part 303 (Planning Investments) and part 306 (Training, Research and Technical Assistance Investments). (c) Part 304 (Economic Development Districts). (1) Contain at least one geographic area that fulfills the economic distress criteria set forth in paragraph (a)(1) of this section and is identified in an approved CEDS; and (2) Meet the Regional eligibility requirements set forth in § 304.1 of this chapter. (d) EDA reserves the right to reject any documentation of Project eligibility that it determines is inaccurate or otherwise unreliable. [71 FR 56675, Sept. 27, 2006, as amended at 73 FR 62865, Oct. 22, 2008; 79 FR 76124, Dec. 19, 2014] Subpart D—Investment Rates and Matching Share Requirements § 301.4 Investment rates. (a) Minimum Investment Rate. (b) Maximum Investment Rate General rule. (i)(A) Relative needs. ( 1 ( 2 ( 3 ( 4 (B) A Project is eligible for the maximum allowable Investment Rate as determined by EDA between the time EDA receives the application for Investment Assistance and the time that EDA awards Investment Assistance to the Project; however, the burden is on the Eligible Applicant to establish the relative needs of the Region in which the Project is located. (ii) Table 1. i.e., Table 1 Projects located in regions in which: Maximum allowable (A) The 24-month unemployment rate is at least 225% of the national average; or 80 (B) The per capita income is not more than 50% of the national average 80 (C) The 24-month unemployment rate is at least 200% of the national average; or 70 (D) The per capita income is not more than 60% of the national average 70 (E) The 24-month unemployment rate is at least one percentage point greater than the national average; or 60 (F) The per capita income is not more than 80% of the national average 60 (2) Projects subject to a Special Need. (3) Projects under part 303. (i) The minimum Investment Rate for Projects under part 303 of this chapter shall be 60 percent. (ii) Except as otherwise provided in paragraph (b)(3)(iii) of this section or in paragraph (b)(5) of this section, the maximum allowable Investment Rate for Projects under part 303 of this chapter shall be the maximum allowable Investment Rate set forth in Table 1 for the most economically distressed county or other equivalent political unit ( e.g., (iii) In compelling circumstances, the Assistant Secretary may waive the application of the first sentence in paragraph (b)(3)(ii) of this section. (4) Projects under part 306. (i) Merits, and is not otherwise feasible without, an increase to the Investment Rate; or (ii) Will be of no or only incidental benefit to the Eligible Recipient. (5) Special Projects. Table 2 Projects Maximum Projects that involve broad Regional planning and coordination with other entities outside the Eligible Applicant's political jurisdiction or area of authority, under special circumstances determined by EDA, and Projects that effectively leverage other Federal Agency resources 80 Projects of Indian Tribes 100 Projects for which EDA receives appropriations under section 703 of PWEDA (42 U.S.C. 3233) and Projects to address and implement post-disaster economic recovery efforts in Presidentially Declared Disaster areas in a timely manner 100 Projects of States or political subdivisions of States that the Assistant Secretary determines have exhausted their effective taxing and borrowing capacity, or Projects of non-profit organizations that the Assistant Secretary determines have exhausted their effective borrowing capacity 100 Projects under parts 305 or 307 that receive performance awards pursuant to § 308.2 of this chapter 100 Projects located in a District that receive planning performance awards pursuant to § 308.3 of this chapter 100 (c) Federal Funding Opportunity announcements may provide additional Investment Rate criteria and standards to ensure that the level of economic distress of a Region, rather than a preference for a geographic area or a specific type of economic distress, is the primary factor in allocating Investment Assistance. [71 FR 56675, Sept. 27, 2006, as amended at 73 FR 62865, Oct. 22, 2008; 75 FR 4262, Jan. 27, 2010; 79 FR 76125, Dec. 19, 2014; 90 FR 51992, Nov. 19, 2025] § 301.5 Matching share requirements. The required Matching Share of a Project's eligible costs may consist of cash or In-Kind Contributions. In addition, the Eligible Applicant must provide documentation to EDA demonstrating that the Matching Share is committed to the Project, will be available as needed and is not or will not be conditioned or encumbered in any way that would preclude its use consistent with the requirements of the Investment Assistance. EDA shall determine at its sole discretion whether the Matching Share documentation adequately addresses the requirements of this section. [82 FR 57053, Dec. 1, 2017] § 301.6 [Reserved] Subpart E—Application Requirements; Evaluation Criteria § 301.7 Investment Assistance application. (a) For all EDA Investment Assistance programs, including the Public Works, Economic Adjustment Assistance, Planning, Local Technical Assistance, Research and National Technical Assistance, and University Center programs, EDA will publish an FFO that specifies application submission requirements and evaluation procedures and criteria. Each FFO will be published on the EDA Web site and at http://www.grants.gov http://www.grants.gov (b) PWEDA does not require nor does EDA provide an appeals process for denial of applications or EDA Investment Assistance. [75 FR 4262, Jan. 27, 2010, as amended at 79 FR 76126, Dec. 19, 2014; 82 FR 57053, Dec. 1, 2017] § 301.8 Application evaluation criteria. EDA will screen all applications for the feasibility of the budget presented and conformance with EDA's statutory and regulatory requirements. EDA will assess the economic development needs of the affected Region in which the proposed Project will be located (or will service), as well as the capability of the Eligible Applicant to implement the proposed Project. EDA will also review applications for conformance with program-specific evaluation criteria set out in the applicable FFO. [82 FR 57053, Dec. 1, 2017] § 301.9 Application selection criteria. (a) EDA will review completed application materials for compliance with the requirements set forth in PWEDA, this chapter, the applicable FFO, and other applicable Federal statutes and regulations. From those applications that meet EDA's technical and legal requirements, EDA will select applications based on the: (1) Availability of funds; (2) Competitiveness of the applications in accord with the criteria set forth in § 301.8; and (3) Funding priority considerations identified in the applicable FFO. (b) EDA will endeavor to notify applicants as soon as practicable regarding whether their applications are selected for funding. [79 FR 76127, Dec. 19, 2014] § 301.10 Formal application requirements. Each formal application for EDA Investment Assistance must: (a) Include evidence of applicant eligibility (as set forth in § 301.2) and of economic distress (as set forth in § 301.3); (b) Identify the sources of funds, both eligible Federal and non-EDA, and In-Kind Contributions that will constitute the required Matching Share for the Project ( see (c) For Projects under parts 305 or 307 of this chapter, include a CEDS acceptable to EDA pursuant to part 303 of this chapter or otherwise incorporate by reference a current CEDS that EDA approves for the Project. The requirements stated in the preceding sentence shall not apply to: (1) Strategy Grants, as defined in § 307.3 of this chapter; and (2) A Project located in a Region designated as a Special Impact Area pursuant to part 310 of this chapter. (d) Projects that propose the construction of a business, technology, or other type of incubator or accelerator, must include a feasibility study demonstrating the need for the Project and an operational plan based on industry best practices demonstrating the Eligible Applicant's plan for ongoing successful operations. EDA will provide further guidance in the applicable FFO. EDA may require the Recipient to demonstrate that the feasibility study has been conducted by an impartial third party, as determined by EDA. [75 FR 4263, Jan. 27, 2010, as amended at 79 FR 76127, Dec. 19, 2014] § 301.11 Infrastructure. (a) EDA will fund both construction and non-construction infrastructure necessary to meet a Region's strategic economic development goals and needs, which in turn results in job creation. This includes infrastructure used to develop basic economic development assets as described in §§ 305.1 and 305.2 of this chapter ( e.g., (1) Business Incubation. (2) Business Acceleration. (3) Venture Development Organization. VDO (4) Proof of Concept Center. (5) Technology Transfer. (b) In general, successful Projects, including innovation and entrepreneurship-related infrastructure, require the engagement of a broad range of Regional stakeholders and resources. Therefore through appropriate FFOs and program requirements, EDA will seek to advance interagency coordination by funding Projects that demonstrate effective leveraging of other Federal Agency resources based on a Region's strategic economic development goals and needs. For all types of Projects, EDA assistance may not be used to provide direct venture capital to a for-profit entity because of the restrictions set out in section 217 of PWEDA (42 U.S.C. 3154c) and part 309 of this chapter. Nonetheless, EDA may consider an application more competitive if it includes measures to address the need to provide entrepreneurs with access to early stage capital outside of the proposed EDA Project budget. See [79 FR 76127, Dec. 19, 2014, as amended at 82 FR 57053, Dec. 1, 2017]